Correlation Between Shandong Polymer and Shenzhen New
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Shenzhen New Nanshan, you can compare the effects of market volatilities on Shandong Polymer and Shenzhen New and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shandong Polymer with a short position of Shenzhen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Shenzhen New.
Diversification Opportunities for Shandong Polymer and Shenzhen New
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Shenzhen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan and Shandong Polymer is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shandong Polymer Biochemicals are associated (or correlated) with Shenzhen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Shenzhen New go up and down completely randomly.
Pair Corralation between Shandong Polymer and Shenzhen New
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 0.92 times more return on investment than Shenzhen New. However, Shandong Polymer Biochemicals is 1.08 times less risky than Shenzhen New. It trades about 0.05 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about 0.04 per unit of risk. If you would invest 383.00 in Shandong Polymer Biochemicals on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Shandong Polymer Biochemicals or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Shenzhen New Nanshan
Performance |
| Timeline |
| Shandong Polymer Bio |
| Shenzhen New Nanshan |
Shandong Polymer and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Shenzhen New
The main advantage of trading using opposite Shandong Polymer and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Shenzhen New can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shenzhen New will offset losses from the drop in Shenzhen New's long position.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Shandong Gold Mining |
| Shenzhen New vs. Shandong Polymer Biochemicals | Shenzhen New vs. Xiandai Investment Co | Shenzhen New vs. Nuode Investment Co | Shenzhen New vs. Shenzhen Centralcon Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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